General Motors has announced that it will officially cease manufacturing operations and close its Halol plant in India on April 28th, 2017. The facility was initially slated to be closed in mid-2016, but the automaker ran into some difficulties related to employee separation packages.
The Halol plant employs roughly 650 people and produces the Chevrolet Cruze (first generation), Enjoy, and Tavera for the Indian market. Meanwhile, the Talegaon facility produces propulsion systems, along with the Chevrolet Spark (legacy Daewoo Matiz), Chevrolet Beat (global-market Chevrolet Spark), and the Chevrolet Sail sedan and hatchback. Production of these vehicles will be moved to its Talegaon plant in Maharashtra.
“We will support our employees at the Halol plant throughout this transition,” said GM India President and Managing Director Kaher Kazem. “We have in place the options of a significantly enhanced separation package or continuity of employment at our Talegaon plant.”
Specifically, employees are receiving financial counseling and tax advice, plus information and transition support for those employees transferring to the Talegaon plant.
The automaker also states that it is “working with government authorities and labor unions, as well as impacted employees and suppliers, to ensure an orderly transition.”
“We thank our employees at the Halol plant for their hard work and professionalism,” said Kazem. “We also want to sincerely thank our suppliers and the government of Gujarat for their support of our manufacturing operations at Halol.”
GM India is in talks with its Chinese partner SAIC to sell the assets of the Halol site.